Warren Buffet Is Concerned About The Fed Pulling Away From Bond Buying Program

Buffet Is Afraid Markets Will React If The Fed Stops It’s Bond Buying Program

Overconfidence And The MarketWarren Buffet, one of the nation’s most savvy and admired investors, has expressed his concern over the Fed’s bond buying program and its potential negative impact on the stock markets and the economy as a whole.  Generally speaking, Buffet has remained a staunch supporter of Bernanke, and his bond buying program of 45 billion in bonds and 40 billion in mortgage backed security every single month.  His concern is how the economy and the markets will respond if the Fed begins to slowly ease out of their Program to stimulate the economy.

Buffet Thinks The Stocks Will Crash If The Fed Pulls Away From The Bond Buying Program

Buffet pointed to the stock market sell-off from a couple weeks ago, when the Fed minutes indicated that the government might be easing off on their bond buying.  He asks the question, what will the markets do if the threat to stop the easing becomes a reality?  The Fed has trillions of dollars worth of U.S. treasuries and mortgages.  If they begin selling them back, how will this impact the economy and investors?

The World’s Investors Are Watching The Fed To Determine When To Pull Out Of Assets

Buffet also stated that the world has been keeping a close watch on the Fed’s actions, waiting for them to tighten up as a sign that it’s time to pull out of assets.  The resulting pull back in the markets could be very harmful for many investors and the American economy.

For more information on the Fed’s Bond Buying program and how cessation of the program could impact your investments, speak to a Redhawk Wealth Advisor near you.  A Redhawk Advisor could guide you towards some very unique investment options that are perfectly tailored to weather the storms facing today’s economy.

http://money.cnn.com/2013/03/04/investing/buffett-federal-reserve/index.html?iid=A_E_News

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